The Return OF Your Money Beats A Return On Your Money

The Return OF Your Money Beats A Return On Your Money

I am more concerned with the return of my money than the return on my money.Mark Twain

When I first came upon the quotation above, it really resonated with me.

On several occasions in the past, and with 20:20 hindsight, I could see that I'd never really considered the depth of this concept as paramount when assessing an investment opportunity. Now I can clearly see that not only do fundamental elements of security come into play, but also the possibility of dramatically increasing the ability of every pound to generate a return many times over.

Naturally, with some property investment opportunities, there is scope for your investment funds to be secured against assets. This may be in the form of a charge secured against the property you are considering investing in, or an alternative property may be offered for your hard-earned cash to be backed-by. Other assets may also be put forward, and may well be suitable to provide a hedge.

As a secured creditor, you gain a tremendous amount of protection and leverage with your debtor if things go wrong.

Most people get that, and this is one of the primary reasons why banks will consider lending you money for investment in a property, but not for a stock market share.

What hadn't dawned on me initially is that if the return OF your money could be structured in such a way as to be returned in a timely fashion, that you could re-use the funds and 'rinse and repeat' as frequently as possible.

Yes, you could put up your funds as a deposit on a single property purchase, and re-mortgage once the property has gained value, effectively releasing your original capital, but this could take years - maybe even a decade!

What if you could put £100K into a project, backed by a charge against an asset, receive a decent rate of return ON your money, AND have the capital and return paid back to you within 12 months?

How many times would you repeat the process?

If you're like me, then then answer is: "as many times as possible, please!".